Sensex up over 300 points, midcaps underperform; IT zooms, ONGC dips
24 May 2018
Fund raising: Auto component maker Minda Corporation today said it has raised Rs 310 crore from qualified institutional placement (QIP) of shares.
International and domestic institutional investors participated in the issue, Minda Corporation said in a statement.
"This helps us prepare for aggressively pursuing future growth and also expanding our shareholder base," Minda Corporation Chairman and Group CEO Ashok Minda said.
Minda Corporation has a diversified product portfolio that encompasses safety, security and restraint systems; driver information and telematics systems and interior systems for auto OEMs, reports PTI.
Jet Airways in focus: With Jet Airways incurring a huge fourth quarter loss of over Rs 1,000 crore, its auditors have said the "appropriateness of assumption of going concern" for the company depends on its ability to raise necessary funds, among other factors.
In accounting parlance, the 'going concern assumption' means that the company will remain in business for the foreseeable future without being forced to halt operations and liquidate its assets.
The airline posted a whopping Rs 1,036 crore net loss for the March quarter due to rise in oil prices and weaker rupee, compared to a profit of Rs 602.4 crore in the corresponding period of FY17.
The Naresh Goyal-owned full service carrier reported a quarterly loss for the first time in eleven quarters, reports PTI.
Market Closing: Benchmark indices regained strength in late trade on short covering, with the Sensex rising 318.20 points or 0.93 percent to 34,663.11.
The 50-share NSE Nifty rallied 83.50 points or 0.80 percent to 10,513.90.
Tata Motors, GAIL and ONGC fell 4-7 percent while TCS, Infosys, Axis Bank and Bharti Airtel gained up to 4 percent.
Nifty Midcap fell 70 points on weak market breadth. About 1,087 shares declined against 997 advancing shares on teh NSE.
REC, Jubilant Foodworks, Parag Milks Foods, Hexaware, KPIT Tech and L&T Infotech gained up to 5 percent.
United Spirits, Jet Airways, Bharat Forge and Motherson Sumi fell up to 6 percent.
Earnings Reaction: 20 Microns share price rallied 5 percent after March quarter profit jumped to Rs 3.4 crore from Rs 0.7 crore and revenue grew by 14.5 percent to Rs 101.1 crore YoY.
EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 65.6 percent to Rs 12.9 crore and margin expanded 390 basis points to 12.7 percent compared to year-ago.
Buzzing: Shares of V-Mart Retail added 5.5 percent intraday Thursday as company reported 148 percent jump in its Q4FY18 net profit at Rs 15.9 crore versus Rs 6.4 crore in same quarter last year.
Revenue was up 18 percent at Rs 297.4 crore against Rs 252 crore.
Operating profit or EBITDA rose 55 percent at Rs 23.1 crore and margin was up at 7.8 percent.
V-Mart Retail was quoting at Rs 2,326.30, up Rs 61.60, or 2.72 percent on the BSE.
Gail Q4 results: The company has registered nearly 300 percent jump in its Q4 net profit at Rs 1,021 crore against Rs 260 crore in the same quarter last fiscal.
Meanwhile, profit of the company declined by 19 percent on sequential basis.
Revenue from operation was up at Rs 15,430.69 crore versus Rs 13,674 crore.
The board of directors of the company recommended the payment of final dividend at 14.40 percent (Rs 1.44 per share) for the FY 2017-18, subject to approval of shareholders in the ensuing annual general meeting.
ONGC in focus: ONGC share price losses trimmed to 4.5 percent from 11 percent amid the news that the government may levy a windfall tax on oil producers.
NSE Now Software Problem: NSE Now, a web-based trading software used by the National Stock Exchange, is facing technical problems and has been shut down temporarily, CNBC-TV18 reported.
The software is shut down for brokers and sub-brokers. NSE informed brokers, saying that there is a technical problem and the exchange is trying to rectify the same.
NSE NOW is a licensed trading software that offers direct connectivity to NSE exchange for trade execution and data feeds through trading terminals, web-based browsers and mobile devices.
NOW supports trading in all of the products on NSE cash and derivatives markets, as well as mutual fund units on exchange and trading on other exchanges.
Members are able to access smart order routing, historical and real-time intra-day charting and other user friendly tools. In addition to its trading desk features, NOW has a built-in risk management system and allows access to our suite of data feed products, NSE said on the website.
Buzzing: Somany Ceramics share price fell 5 percent after its March quarter net profit declined 7.2 percent year-on-year to Rs 23.5 crore and revenue slipped 4.9 percent to Rs 526.7 crore.
EBITDA (earnings before interest, tax, depreciation and amortisation) was down 4.7 percent at Rs 46.6 crore but margin improved 10 basis points to 8.9 percent compared to year-ago.
The company posted one-time loss at Rs 1.9 crore in Q4FY18 against Rs 4.1 crore in Q4FY17.
Earnings Reaction: Heidelberg Cement share price jumped more than 5 percent after March quarter profit shot up 40.8 percent to Rs 52.1 crore from Rs 37 crore in same period last year.
Revenue from operations grew by 14.8 percent to Rs 531.3 crore compared to Rs 462.9 crore in corresponding period last year.
EBITDA (earnings before interest, tax, depreciation and amortisation) zoomed 51.4 percent year-on-year to Rs 120.2 crore and margin expanded 550 basis points to 22.6 percent in Q4FY18.
Market Update: The market continued to trade higher, with the Sensex rising around 200 points on support from technology and banking & financial stocks. Sharp selling pressure in ONGC and Tata Motors capped gains.
The Nifty Midcap index continued to trade lower, falling more than half a percent.
Tata Motors declined more than 7 percent as global brokerage houses CLSA, Jefferies, Morgan Stanley slashed target prices by 10-16% after weak Q4 earnings.
The 30-share BSE Sensex rose 209.54 points to 34,554.45 and the 50-share NSE Nifty gained 46.30 points at 10,476.70.
Banks' Credit & Deposits: Banks' credit grew by 12.64 percent year-on-year to Rs 85,51,099 crore in the fortnight ended May 11, 2018, according to an RBI data.
In the similar fortnight ended May 12, 2017, banks' advances stood at Rs 75,90,941 crore.
In the previous fortnight ended April 27, 2018, bank credit had increased by 12.61 per cent to Rs 85,38,570 crore, from Rs 75,82,391 crore in the period ended April 28, 2017.
Banks' deposits grew by 7.61 percent to Rs 1,13,92,165 crore in the fortnight ended May 11, 2018, compared with Rs 1,05,86,083 crore in the fortnight ended May 12, 2017, the data by Reserve Bank of India (RBI) showed.
Results: Zydus Wellness share price rebounded after strong set of earnings for March quarter. Profit grew by 21.9 percent year-on-year to Rs 36.3 crore and revenue from operations increased 15.9 percent to Rs 131.7 crore in Q4FY18.
EBITDA (earnings before interest, tax, depreciation and amortisation) shot up 25 percent to Rs 33.4 crore and margin expanded 190 basis points to 25.4 percent compared to year-ago.
Earnings Reaction: Manugraph India share price rallied 10 percent after the company narrowed loss to Rs 8.7 crore for the March quarter from Rs 47.1 crore in year-ago.
Revenue from operations during the quarter grew by 14.2 percent to Rs 80.7 crore compared to Rs 70.7 crore in same period last year.
NCLAT admits banks' petition over Jaypee land: The National Company Law Appellate Tribunal admitted a petition filed by banks against the NCLT order which had directed Jaiprakash Associates to return nearly 760 acres of land to its subsidiary Jaypee Infratech.
A two-member bench headed by Chairman Justice S J Mukhopadhaya also issued notices to the resolution professional (RP) of the company over the petition filed by three lenders -- Axis Bank, Standard Chartered Bank and ICICI Bank.
The bench fixed July 13 as the next date of hearing, reports PTI.
Fortis in Focus: Manipal-TPG combine has said it has extended the validity of its modified offer for Fortis Healthcare to June 6, 2018.
On May 17, Malaysian firm IHH Healthcare Berhard had extended the acceptance period of its enhanced revised proposal for Fortis to May 29.
In a letter to the directors of Fortis Healthcare Ltd (FHL), Manipal-TPG combine said it understands that the FHL board is still in the process of considering the modified new offer.
"As you are aware, our modified new offer is valid till May 29, 2018 and in order to provide the FHL board with sufficient time to consider our modified new offer, we propose to extend the validity of our modified new offer...," the letter added.
The modified new offer shall remain valid and binding in its entirety until June 6, 2018, for acceptance by FHL Board and for recommendation to the shareholders of FHL, Manipal-TPG combine said, reports PTI.
Market Update: The market traded strong, but is off its day's high. Technology and banking & financials stocks continued to lend support to the market while the selling in ONGC and Tata Motors capped gains.
The 30-share BSE Sensex rose 247.96 points to 34,592.87 and the 50-shrae NSE Nifty gained 60.40 points at 10,490.80 while the Nifty Midcap index lost half a percent.
ONGC extended losses to over 7 percent after a media report indicated that the government may levy a windfall tax on oil producers.
Earnings: Construction company NCC has reported healthy earnings for the March quarter 2018, backed by strong operational growth.
Net profit during the quarter grew by 61.2 percent to Rs 102.7 crore compared to Rs 63.7 crore in corresponding period last fiscal.
Revenue from operations increased 11.9 percent year-on-year to Rs 2,395 crore for the quarter ended March 2018.
EBITDA (earnings before interest, tax, depreciation and amortisation) shot up 74.8 percent to Rs 304.4 crore and margin expanded 460 basis points to 12.7 percent compared to year-ago.
Market Update: Benchmark indices recouped all its previous day's losses as the Sensex rallied 327.47 points or 0.95 percent to 34,672.38, backed by technology and banking & financial stocks.
ITC (up 1.2 percent) and Reliance Industries (0.6 percent) also lent support to the market.
The 50-share NSE Nifty rose 83 points to 10,513.40 while the Nifty Midcap index continued to trade in the red, down 0.3 percent.
Novelis to Double Automotive Aluminum Capacity in China: Novelis Inc, the world leader in aluminum rolling and recycling, announced it will invest approximately $180 million to double its automotive aluminum body sheet capacity at its Changzhou facility in China.
The investment will be a continuous annealing solution heat (CASH) treatment line that will add approximately 100 kilotonnes of capacity and will include a high-speed slitter as well as a fully automated packaging line, Hindalco said in its filing.
Windfall oil tax on ONGC in offing to soften fuel prices: The government may levy a windfall tax on oil producers like Oil and Natural Gas Corp (ONGC) as part of a permanent solution it is working on for moderating the spiralling retail prices of petrol and diesel.
The tax, which may come in form of a cess, will kick in the moment oil prices cross USD 70 per barrel, sources privy to the development said.
Under the scheme, oil producers, who get paid international rates for the oil they produce from domestic fields, would have to part with any revenue they earn from prices crossing USD 70 per barrel mark.
The revenues so collected would be used to pay fuel retailers so that they absorb spikes beyond the threshold levels, they said.
This may be accompanied by a minor tinkering with excise duty rates to give immediate relief to consumers. States too would be asked to cut sales tax or VAT to show a visible impact on retail prices, reports PTI.
Drug Approval: Aurobindo Pharma, Sun Pharma & Ajanta Pharma have received tentative approval for Tadalfil tablets that are used to treat arterial hypertension & erectile dysfunction.
Market Update: Benchmark indices extended gains in afternoon, backed by technology stocks. HDFC, ICICI Bank, Reliance Industries and ITC also supported the market
The 30-share BSE Sensex rallied 222.81 points to 34,567.72 and the Nifty is inching towards 10,500, up 54.90 points at 10,485.30while the Midcap index continued to underperform frontliners, falling 0.3 percent.
Country's largest IT services firms Infosys and TCS rose nearly 3 percent on favourable rupee movement.
Buzzing : Aditya Birla Capital share price gained more than a percent after global brokerage house Credit Suisse has initiated Outperform rating on the stock with a price target of Rs 175, implying a 24 percent potential upside from Wednesday's closing price.
The company is a financial conglomerate with mix of leading and emerging businesses.
Life insurance business is showing improving profitability, the research house said, adding the key catalyst for lending business could be an upgrade in credit rating.
May 24, 12:29 PM (IST)
Crude Update: Oil prices fell, pulled down by expectations that OPEC members could step up production in the face of worries over supply from both Venezuela and Iran.
International benchmark Brent futures were down 0.34 percent, at $79.53 per barrel.
US West Texas Intermediate (WTI) crude futures were down 0.24 percent, at $71.67 a barrel, reports CNBC.
Earnings: Private sector lender City Union Bank has reported a 18 percent growth year-on-year in profit for the quarter ended March 2018, with improvement in asset quality.
Profit during the quarter increased to Rs 152.1 crore from Rs 128.9 crore in year-ago period.
Net interest, the difference between interest earned and interest expended, grew by 18.5 percent year-on-year to Rs 368 crore in Q4FY18.
Asset quality improved during January-March quarter as gross non-performing assets were lower at 3.03 percent compared to 3.30 percent previous quarter. Net NPAs were also lower at 1.70 percent against 1.74 percent on sequential basis.
Provisions remained at elevated levels that limited bank's profitability, reporting at Rs 86.2 crore for the quarter, up 0.6 percent compared to previous quarter and up 21 percent over same period last year.
Earnings: ONGC Videsh, the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), reported a 29 percent jump in its net profit for the fiscal year ending March 31, 2018 as it produced more crude oil and natural gas.
Consolidated net profit in 2017-18 fiscal at Rs 981 crore was 29.6 per cent higher than Rs 757 crore in the previous financial year, the company said in a statement.
OVL is an unlisted company and as such is not obligated to release quarterly earning numbers, reports PTI.
Market Update: Benchmark indices extended gains, with the Sensex rising around 200 points despite mixed trend in Asian stocks.
Technology stocks rallied further, with the IT index up nearly 2 percent as TCS, Infosys and HCL Technologies gained more than 2 percent following favourable rupee movement.
Pharma, select banking & financials and metals stocks also lend support to the market while Auto Index is down over a percent due to sharp correction in Tata Motors that lost more than 6 percent on disappointing earnings.
The 30-share BSE Sensex rose 192.37 points to 34,537.28 and the 50-share NSE Nifty gained 44.60 points at 10,475.
Order Win: The construction arm of Larsen & Toubro has won orders worth Rs 2,112 crore.
Buildings & factories business has secured orders worth Rs 1,565 crore from Airport Authority of India for the modernisation of Chennai Airport, Phase-II.
Another order has been received from a leading developer for the construction of multi level car parking with an integrated commercial mall at Chennai airport, it said.
Power transmission & distribution business has secured orders worth Rs 547 crore, which is for turnkey construction of EHV Substations.
Result reaction: Shares of Godrej Industries shed 6 percent in spite of company reported robust numbers in the quarter ended March 2018.
The company's consolidated fourth quarter net profit increased by 190 percent to Rs 277.09 crore from Rs 95.23 crore posted in January-March period last year.
Revenue from operation was up by 15 percent at Rs 2316.91 crore against Rs 2004.16 crore.
Increase in FPI investment limit: Shares of MEP Infrastructure Developers gained 7.5 percent on the back of strong March quarter numbers and increasing FPI investment limit.
The company has posted 120 percent increase in its Q4FY18 net profit at Rs 26.59 crore versus Rs12.04 crore in the same quarter last fiscal.
The company board approved to increase the limits for investment in the equity share capital of the company by registered foreign portfolio investor (FPIs) (Including FlIs) from 24 percent to 100 percent, subject to the approval of the members of the company and other applicable statutory approvals, if any.
Market Update: Benchmark indices traded higher amid consolidation, backed by technology stocks. Index heavyweights Reliance Industries, ITC, HDFC also lent support to the market.
The 30-share BSE Sensex gained 140.39 points at 34,485.30 and the 50-share NSE Nifty rose 27 points to 10,457.40 while the Nifty Midcap index continued underperform frontliners, falling half a percent.
Infosys gained 2 percent due to favourable rupee movement that may help IT companies, which exports software services, report good earnings.
The rupee gained 10 paise after correcting 38 paise to 68.42 a dollar in previous session.
Buzzing: Highways builder Ashoka Buildcon share price gained 3 percent after its subsidiary has received an arbitral award of Rs 383.80 crore against various claims filed by it.
"Ashoka Infrastructure (SPV), which had executed Pune Shirur Road Project in Maharashtra has received an arbitral award of Rs 383.80 crore against various claims filed by the SPV," Ashoka Buildcon said in a regulatory filing.
The project had been awarded by Maharashtra Government for four-laning and strengthening of Pune Ahmednagar Road SH 60. The toll collection at the said project had been stopped since August 8, 2014, the company added.
Fund Raising: Suzlon Energy said it is considering to raise Rs 900 crore from the market to replace its existing debt.
Besides, the company is planning to issue securities to an extent of Rs 2,000 crore, Suzlon Energy said in a regulatory filing.
Suzlon's board is meeting on May 30 to "consider and approve" issuance of "redeemable non-convertible debentures/non-equity linked instruments in one or more tranches to an extent of Rs 900 crore on a private placement basis for replacement of existing debt."
However, this would be subject to the approval of shareholders, reports PTI.
Buzzing: Share price of Shalimar Paints touched 52-week low of Rs 113.50, slipping more than 5 percent as company increased its losses in the quarter ended March 2018.
The company has posted net loss of Rs 16.07 crore in Q4FY18 against loss of Rs 12.81 crore in Q4FY17. The company had posted net loss of Rs 9.84 crore in quarter ended December 31, 2017.
Revenue from operation declined 27 percent at Rs 60.22 crore against Rs 83.01 crore.
Telecom Subscriber Base: Telecom subscriber base in the country again crossed 1.2 billion mark, with mobile service companies recording a net addition of over 26 million customers in March, according to monthly subscriber report of telecom regulator Trai released.
"The number of telephone subscribers in India increased from 1,179.83 million at the end of February 2018 to 1,206.22 million at the end of March 2018, thereby showing a monthly growth rate of 2.24 percent," the report said.
The overall tele-density in the country reached to 92.84 with urban tele-density of 165.90 and rural tele-density at 59.05 at the end of March. The Indian telecom industry's subscriber base had for the first time breached 1.2 billion mark in May 2017 but slipped below it in November 2017.
The net addition trend shows that March was a competitive month for mobile segment with Idea Cellular and Bharti Airtel reducing their gap significantly with Reliance Jio, reports PTI.
Top gainers: Infosys, TCS, HCL Technologies and Tech Mahindra gained 1-2 percent on hope of good earnings in June quarter as sharp correction in rupee is going to help their exports business.
HDFC (up 0.94 percent), Reliance Industries (up 0.30 percent), ITC (0.26 percent) and ICICI Bank (0.27 percent) continued to lend support to the market.
Market Update: Benchmark indices are off their opening highs due to further sharp correction in Tata Motors that hit fresh 52-week low following dismal performance in Q4.
The Sensex gained 60.88 points at 34,405.79 and the 50-share NSE Nifty rose 8.60 points to 10,439.
Market Update: The market traded higher after yesterday's sharp fall, with the Sensex rising around 100 points despite mixed trend in Asian peers.
The Nifty Midcap underperformed frontliners while IT index outperformed every indices, rising more than 1.5 percent on sharp depreciation in the rupee yesterday.
The rupee recouped some of previous day's losses, trading 12 paise higher at 68.30 a dollar. Yesterday, it had corrected 38 paise to close at 68.42 a dollar.
The 30-share BSE Sensex gained 114.95 points at 34,459.86 and the 50-share NSE Nifty rose 23.70 points to 10,454.10.
About 985 shares advanced against 542 declining shares on the BSE.
Earnings Reaction: Jet Airways slipped a little over 8 percent to hit its fresh 52-week low of Rs 386.05 on the BSE after the airliner reported a standalone net loss of Rs 1,036 crore in the March quarter due to rise in oil prices and a weaker rupee.
The company had reported a net profit of Rs 602.42 crore in the year-ago period.
The total income also declined by 3.44 percent to Rs 6,055 crore during the quarter, against Rs 6,271.21 crore in the same quarter last year, it said in a regulatory filing.
?Buzzing: LTI, earlier known as Larsen & Toubro Infotech, share price gained more than 3 percent after it posted a sequential rise of 6.2 percent in revenue in the fourth quarter, led by broad-based growth across all businesses.
LTI reported revenue of Rs 20,012 million, and net income of Rs 2,894 million, a growth of 2.3 percent from the previous quarter.
"It has been a very satisfying quarter and year. Digital revenue rose 42 percent year-on-year,” Sanjay Jalona, Chief Executive of LTI, said in a telephonic interaction with Moneycontrol.
Jalona continues to see digital driving growth at the company. Digital revenues accounted for 33 percent of the overall revenue in the year.
Tata Motors in Focus: Global brokerage firms slashed 12-month target price for Tata Motors which missed analysts' expectations with a 50-percent year-on-year fall in its consolidated net profit for the March quarter to Rs 2,176.16 crore on Wednesday.
An average of estimates of 14 analysts polled by Reuters pegged the company's consolidated net profit to come in at Rs 4,041 crore. The fall in bottom line was primarily due to Rs 1,641.38-crore impairment of capital work in progress.
Reacting to the results, global brokerage firms maintain their rating but slashed their target price as well as earnings per share (EPS) to factor in lower volume growth, margins and higher depreciation for JLR.
The global brokerage firm, CLSA, maintain a ‘sell’ rating on Tata Motors post Q4 results but slashed its target price to Rs 295 from Rs 330 earlier.
Market Opening: Benchmark indices opened the trade on a positive note indicated by SGX Nifty futures, partly led by short covering as the market lost around a percent in previous session.
The 30-share BSE Sensex gained 93.16 points at 34,438.07 and the 50-share NSE Nifty rose 32.60 points to 10,463.
Nifty Midcap index gained 77 points.
Jet Airways, Shalimar Paints, ENIL and Bharat Forge fell up to 5 percent.
L&T Infotech, IGL, Jain Irrigation, Natco Pharma, Eros International, Rupa, PNC Infratech, KPIT Technologies, Strides Shasun, Reliance Communications and NIIT Technologies gained up to 5 percent.
Earnings: Naresh Goyal-promoted Jet Airways reported a standalone net loss of Rs 1,036 crore in the March quarter due to rise in oil prices and weaker rupee.
The company had reported a net profit of Rs 602.42 crore in the year-ago period.
The total income also declined by 3.44 per cent to Rs 6,055 crore during the quarter, against Rs 6,271.21 crore in the same quarter last year, it said in a regulatory filing.
Fuel expenses rose by 31 per cent to Rs 2,063.34 crore, against Rs 1,282.41 crore.
"Financial performance during the quarter was weaker due to the continuing increase in the price of Brent fuel without a corresponding increase in air fares, as well as mark-to-market adjustments due to a weaker rupee," Jet Airways chief executive officer Vinay Dube said in a press release.
For financial year 2017-18, the airline reported a standalone net loss of Rs 767.62 crore, against a net profit of Rs 1,482.52 crore, according to the filing, reports PTI.
Stocks in the news: Tata Motors, NCC, Indiabulls Housing, NMDC, GAIL, Shalimar Paints
Rupee and Bond: The Indian rupee recouped some losses in morning trade on Thursday following recovery in other currencies globally.
The rupee gained 10 paise at 68.32 against the US dollar against previous close of 68.42.
The 7.17% 2028 government bond yield opened at 7.83 percent, down 2 basis points from 7.85 percent in previous session.
Market Pre-Opening: Benchmark indices were trading flat in pre-opening following muted trend seen in Asian stocks.
The 30-share BSE Sensex was down 8.07 points at 34336.84 and the 50-share NSE Nifty rose 24.40 points to 10,454.80.
Jet Airways plunged 10 percent and InterGlobe Aviation was down 1 percent.
Indraprastha Gas was up 4 percent and Jain Irrigation gained 4.6 percent.
US stocks ended with small gains on Wednesday after minutes from the Federal Reserve's latest meeting suggested higher inflation may not result in faster interest rate hikes, said a Reuters report.
Asian stocks traded lower on Thursday, with investors cautious over fresh trade-related developments as the trade dispute between the U.S. and China remained in focus.
As long as Nifty50 trades below 10,500 levels, bears will remain in control and the selling pressure could take the index towards 10,350 levels on the downside, suggest experts. The next crucial support is placed at 200-DMA around 10,240.